STAR Conference, London October 2017, 9 th -10 th. Nice to meet you

Transcription

1 STAR Conference, London October 2017, 9 th -10 th Nice to meet you

2 Agenda Company Overview pages 2-25 Financial Overview pages Appendices pages Nice_STAR Conference London, October 2017, 9 th -10 th 2

3 Mission OpenAbility Improving the quality of life by simplifying everyday movements. Nice offers the comfort of going in and out in total freedom, with practical products and emotional design. Nice Company Overview 3

4 Design Thinking Approach Nice has suggested a new interpretation of the connection between people and their domestic environment marked by the utmost simplicity, clearness and aesthetic quality. Boring and complicated operations become smooth and amusing and change into activities that satisfy end-users From Il Sole 24 Ore - Speciale Nova by Marco Bettiol and Stefano Micelli, February 2007 Nice Company Overview 4

5 Evolution Nice Company Overview 5

6 Market Presence Direct presence Italy France Spain Poland Belgium Germany Rumania UK Turkey Portugal Sweden Russia China Singapore India USA Brazil South Africa Australia UAE Nice Company Overview 6

7 Market Figures 2016 consolidated revenues equal to million Products sold in more than 100 countries More than 85% of net sales realized abroad Direct presence in 20 countries with own branches Nice Company Overview 7

8 Multi-Market Approach Industrial Footprint Nice Company Overview 8

9 Focused Factory Industrial Footprint with Competence Centres The Group approach is towards a focused factory, to consolidate the production of excellence in specific business lines. New plants operating in: Germany - focusing on Sun shading systems and Industrial doors Brazil - focusing on Electronics controls Next steps will be: Brazil US FOCUS ON SCREEN IN GERMANY FOCUS ON CONTROL ELECTRONICS IN BRAZIL Nice Company Overview 9

10 People as at Engage people for a sustainable organization: more than 30 nationalities, international management with matrix structure almost 20 spoken languages 470 employees with more than 10 years of service at Nice Nice Company Overview 10

11 People as at High education level: 28% Bachelor/Master Degree 42% High School and Technical Diploma People development: 50,000 tot. hours of training, providing an average of 32.5 hours of training for each employee On-going career acceleration programmes Nice Company Overview 11

12 Market & Brand Approach Product is relation SPECIALIZED DISTRIBUTION GENERAL DISTRIBUTION PRODUCERS ASSEMBLERS CONTRACTORS PRESCRIBERS, INFLUENCERS Nice Company Overview 12

13 Product Portfolio Easy and safe solutions for homes and buildings FOR INTEGRATED ALARM AND MANAGEMENT SYSTEM FOR LIGHTS AND OTHER ELECTRICAL LOADS FOR BLINDS AND SHUTTERS FOR AWNINGS FOR GARAGE DOORS FOR GATES Nice Company Overview 13

14 Solutions for Gates and Barriers The widest range controlled by the most advanced electronics with the finest design: versatile solutions to manage private or public entrances and parking spaces, even in hi-traffic areas. Hi-Speed The perfect answer where quick manoeuvres are required, to guarantee the shortest standing time and the maximum safety. Nice Company Overview 14

15 Solutions for Garage, Rolling Doors To open and close your automation system easily and in total safety, Nice offers powerful and sturdy solutions, suitable also for intensive use in industrial applications. Spy Innovative concept to blend in perfectly with any architectural style. Nice Company Overview 15

16 Solutions for Sun Shading Systems The easiest way to get the right light with the widest range of automated shade systems, for indoor an outdoor applications. The silent operation maintains room ambiance and the absolute precision offers a sophisticated look even in multiple installations. Nice Company Overview 16

17 Solutions for Integrated Building Management With a series of modules combined, Nice offers innovative control units and guarantees an easy integration with the most used protocols in the Building Automation industry. Nice Company Overview 17

18 Home Integration Applications designed to grant the safe control of all electrical equipments, from home alarm to automations, through the Nice smart integrated technology: an intuitive interface available from smartphone, to take care of your comfort and safety. Also for Apple HomeKit. Nice Company Overview 18

19 Home Integration Nice Company Overview 19

20 Nice as a Partner Automation systems tailored to homes, public buildings, commercial spaces, hotels and offices. Interior designers, architects and contractors can find in The Nice Group their privileged partner providing comprehensive support throughout the realization of any project. Unicredit Pavillion, Milan, Italy Automations for louvers Nice cares for Sustainability Automation systems guarantee intelligent management of sunlight and temperature in a building, reducing the use of artificial light, avoiding heat loss and protecting from direct sunlight. Check-out more at TheNiceGroup.com Marina Bay Sands Hotel, Singapore Control systems for interior blind and curtain automations Nice Company Overview 20

21 Centres for Technology Exploiting high-tech procedures and experimentation. In-house R&D Labs with a team of 160 professionals: Italy Germany Brazil USA South Africa Nice Company Overview 21

22 Centres for Technology R&D Expenses Careful protection policy Focus on product launches: high-tech content, continuous improvement overtime Nice Company Overview 22

23 Business to People Approach We shared experiences with 8,500 visitors Nice Company Overview 23

24 Business to People Approach TheNicePlace is home to our training room program: to welcome customers, colleagues and anybody who wants to receive training in our products, sales techniques and much more, for a complete professional development. Nice Company Overview 24

25 Business to People Approach Closer to the professionals The Support section of the website is enriched with new contents dedicated to the professional, such as: Installation and programming tutorial videos, with the answers to the most frequently asked questions; Library to download, including instruction manuals, quick guides, catalogues, brochures, the latest software and firmware releases. Nice Company Overview 25

26 STAR Conference, London October 2017, 9 th -10 th Financial Overview 1 Half 2017 Results

27 Highlights Consolidated Sales 164.0m (+9.2% vs. 1H 2016) Gross margin 53.8% (vs. 53.7% in 1H 2016) EBITDA margin 16.6% (vs. 15.0% in 1H 2016) Group Net Income margin 7.6% (vs. 6.4% in 1H 2016 adjusted*) Operating Free Cash Flow 2.2m (vs. 2.8m in 1H 2016) m 1H H 2016 Δ % Δ % ( 1 ) Net Sales % % 9.2% 6.4% Gross Profit % % 9.5% EBITDA % % 21.0% Group Net Income adjusted (2) % % 29.4% Operating Free Cash Flow Net Financial Position (1) At constant exchange rates (2) Excluding impairment net result of 4.9 mil Euro in 1H2016 NFP -13.5m (vs. -4.5m as of 30 June 2016) (*) Excluding impairment net result 4.9 mil Euro in 1H2016 Nice 1H 2017 Results 27

28 Net Sales Breakdown by Region Home & Building Automation Rest of world 31.5% France 14.6% Italy 10.4% 1H 2017 m 1H H 2016 Δ % Δ % ( 2 ) Rest of Europe 16.7% EU 15 (1) 26.7% France % 5.8% Italy (1.3%) (1.3%) EU 15 (1) % 3.8% Rest of Europe % 6.5% Rest of World % 35.4% Net Sales % 11.7% (1) Excluding Italy and France / (2) At constant exchange rates Rest of world 24.4% Rest of Europe 17.9% France 15.9% EU 15 (1) 29.7% Italy 12.1% 1H 2016 Nice 1H 2017 Results 28

29 Net Sales Breakdown by Region Rest of world 31.5% France 14.6% Italy 10.4% 1H 2017 m 1H H 2016 Δ % Δ % ( 2 ) Rest of Europe 16.7% EU 15 (1) 26.7% France % 1.5% Italy (15.9%) (15.9%) EU 15 (1) (0.5%) 0.2% Rest of Europe % 5.0% Rest of World % 30.6% Net Sales % 6.4% (1) Excluding Italy and France / (2) At constant exchange rates Rest of world 24.1% Rest of Europe 17.3% France 15.7% EU 15 (1) 29.3% Italy 13.6% 1H 2016 Nice 1H 2017 Results 29

30 Profit & Loss m 1H 2017 % 1H 2016 % % Revenues % % 9.2% Cost of goods sold (75.7) -46.2% (69.5) -46.3% Gross Profit % % 9.5% Industrial costs (4.3) -2.6% (5.0) -3.3% Marketing costs (4.9) -3.0% (4.3) -2.9% Trade costs (7.4) -4.5% (7.5) -5.0% General costs (11.7) -7.2% (12.8) -8.5% Personnel costs (32.6) -19.9% (28.5) -19.0% Total Operating Costs (61.0) -37.2% (58.1) -38.7% EBITDA % % 21.0% Depreciation and amortisation (5.1) -3.1% (11.2) -7.5% EBIT % % EBIT adjusted (1) % % 22.4% Financial management and other costs (2.1) -1.3% (1.6) -1.1% Pre-tax profit % % Taxes (7.3) -4.5% (4.9) -3.3% Net profit/loss % % Net profit/loss adjusted (1) % % 31.4% Profit/Loss attributable to non-controllin % % Group net profit/loss % % Group net profit/loss adjusted (2) % % 29.4% 1 As at 30 June 2016, the adjustment refered to the exclusion of the one-off impairment applied on the FontanaArte brand and the property used as the FontanaArte premises, written down respectively by Euro 5.1 million and Euro 2.0 million 2 The adjustment refers to what is indicated in note (1) and to the related tax effect for a total of Euro 2.3 million Nice 1H 2017 Results 30

31 Working Capital Working Capital / LTM Net Sales equivalent 26.3% 25.2% 19.4% 24.1% 21.3% Nice 1H 2017 Results 31

32 Free Cash Flow Nice 1H 2017 Results 32

33 Statement of Financial Position m 1H 2017 FY H 2016 Intangible assets Tangible assets Other fixed assets Fixed Assets Trade receivables Inventory Trade payables (49.6) (49.9) (53.8) Other curr. assets / (Liab.) (11.0) (7.3) (8.8) Net Working Capital Severance and other funds (19.8) (28.1) (14.6) Net Invested Capital Shareholders' equity Minorities (0.9) (1.2) (1.6) Total Shareholders' Equity Cash & cash equivalents (46.9) (70.6) (58.0) Financial assets (5.0) (4.8) (4.7) Total debt Net Debt 13.5 (5.9) 4.5 Net Capital Employed Nice 1H 2017 Results 33

34 Cash Flow Statement m 1H 2017 FY H 2016* Net profit 12,8 13,4 4,8 D&A and other non cash items 6,9 16,0 10,0 Change in Net Working Capital (8,2) 12,1 (1,2) Operating Cash Flow 11,5 41,5 13,6 Capex (9,3) (22,8) (10,7) Operating Free Cash Flow 2,2 18,6 2,8 M&A (9,7) (9,7) 0,0 Free Cash Flow (7,5) 8,9 2,8 Dividend paid out (11,1) (7,8) (7,8) Net Financial Position of the acquired companies 0,0 (0,3) 0,0 Other (0,9) 4,6 0,0 Subtotal (12,0) (3,5) (7,8) Variation of Net Financial Position (19,5) 5,4 (5,0) Initial Net Financial Position 5,9 0,5 0,5 Final Net Financial Position (13,5) 5,9 (4,5) * Some items of the Consolidated Statement of Cash Flows as at 30 June 2016 have been reclassified to allow for comparison with the figures as at 30 June 2017 Nice 1H 2017 Results 34

35 The Path Ahead 2017: The Opportunities Further International Expansion Further Actions Continuous investments in smart technologies. Solid cash generation. The Place: social hub to share ideas, facilitate knowledge flows and create networking for a sustainable growth. Investments in focused factories and reorganization of the industrial footprint to boost efficiency and synergy opportunities. Growth by acquisition. Accelerated sales growth outside Europe. Growth in core markets. Increase our market share in Gate and Screen automation business. Nice 1H 2017 Results 35

36 The Group Structure Shareholding Own Shares 4.60% (situation as at 30/06/2017) Others* 15.93% Parvus A.M. Eu. Ltd* 9.28% Nice Group S.p.A % * Free Float Board of Directors Lauro Buoro - Chairman Roberto Griffa - Chief Executive Officer Denise Cimolai - Director Emanuela Banfi - Independent Director Giorgio Zanutto - Director Lorenzo Galberti - Director Antonio Bortuzzo - Independent Director Chiara Mio - Director Nice 1H 2017 Results 36

37 Stock Chart (1) Share Information N. of shares outstanding Ipo Price 5.70 Price as of 30/06/ Market Capitalization 411m Italian Stock Exchange STAR segment Specialist UBI BANCA (1) From 01/01/2017 to 30/06/2017 Source: Bloomberg Investor Relator Contact Nicola Biondo Ph.: Nice 1H 2017 Results 37

38 STAR Conference, London October 2017, 9 th -10 th Appendices Results

39 Net Sales Breakdown by Region ( Million) FY 2014 % % Ch. FY 2015 % % Ch. FY 2016 % % Ch. France 41,2 15,2% -5,6% 40,1 13,9% -2,8% 41,6 13,4% 3,7% Italy 35,7 13,2% -7,1% 36,7 12,7% 2,7% 36,3 11,7% -1,1% EU 15 (1) 77,1 28,5% 8,0% 81,4 28,3% 5,5% 86,1 27,8% 5,8% Rest of Europe 56,4 20,8% 2,9% 53,7 18,7% -4,9% 55,0 17,8% 2,5% Rest of world 60,4 22,3% 8,4% 76,0 26,4% 25,8% 90,2 29,2% 18,7% Total Sales 270,9 100,0% 2,6% 287,8 100,0% 6,2% 309,1 100,0% 7,4% ( 1 ) Excludes France and Italy Nice Results 39

40 Profit & Loss millions Net sales 270,9 287,8 309,1 Growth % 18,2% 4,7% 12,5% Gross Margin 148,8 157,0 164,2 Gross Margin % 54,9% 54,5% 53,1% EBITDA adjusted (1) 41,5 41,6 45,7 EBITDA % 15,3% 14,5% 14,8% EBIT adjusted (2) 33,3 33,1 36,6 EBIT % 12,3% 11,5% 11,8% Group Net Income adjusted (3) 15,4 15,2 19,0 Net Income % 5,7% 5,3% 6,2% (1) Excluding 1.1 min Euro for redefinition of US operating structures and M&A expenses (2) Excluding what indicated in note (1) and to the one-off impairment applied on the FontanaArte brand and the property used as the FontanaArte premises (3) Excluding what indicated in note (2) and to the related tax effect for a total of Euro 2.3 million. Nice Results 40

41 Balance Sheet millions 31/12/16 31/12/15 31/12/14 Intangible assets 114,0 86,9 74,7 Tangible assets 51,2 41,8 36,9 Other fixed assets 13,0 13,1 14,2 Fixed Assets 178,2 141,8 125,8 Trade receivables 56,7 56,6 59,0 Inventory 62,6 69,5 61,3 Trade payables (49,9) (46,2) (41,3) Other curr. assets / (Liab.) (7,3) (4,1) (4,6) Net Working Capital 62,2 75,8 74,4 Severance and other funds (28,1) (15,5) (10,1) Net Invested Capital 212,3 202,1 190,1 Shareholders' equity 219,4 204,6 203,8 Minorities (1,2) (2,0) (2,2) Total Shareholders' Equity 218,2 202,6 201,6 Cash & cash equivalents (70,6) (65,1) (62,0) Financial assets (4,8) (4,5) (4,8) Total debt 69,4 69,0 55,3 Net Debt (5,9) (0,5) (11,6) Net Capital Employed 212,3 202,1 190,1 Nice Results 41

42 Cash Flow Statement millions 31/12/16 31/12/15 31/12/14 Net profit 13,4 15,6 15,9 D&A and other non cash items 16,0 11,1 4,4 Change in Net Working Capital 12,1 (2,7) 7,2 Operating Cash Flow 41,5 23,9 27,5 Capex (22,8) (11,3) (8,6) Operating Free Cash Flow 18,6 12,6 18,9 M&A (9,7) (13,2) 0,0 Free Cash Flow 8,9 (0,6) 18,9 Dividend paid out (7,8) (5,3) (4,8) Net Financial Position of the acquired companies (0,3) 1,0 0,0 Remaining debt for Acquisitions 0,0 (2,2) 0,0 Other 4,6 (4,0) (2,2) Subtotal (3,5) (10,5) (7,0) Variation of Net Financial Position 5,4 (11,0) 11,9 Initial Net Financial Position 0,5 11,6 (0,3) Final Net Financial Position 5,9 0,5 11,6 Nice Results 42

43 STAR Conference, London October 2017, 9 th -10 th Thank you

44 Disclaimer This presentation has been prepared by Nice S.p.A. for information purposes only and for use in presentations of the Group s results and strategies. For further details on the Nice Group, reference should be made to publicly available information, including the Quarterly Reports and the Annual Reports. Statements contained in this presentation, particularly the ones regarding any Nice Group possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. Any reference to past performance of the Nice Group shall not be taken as an indication of future performance. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. By attending the presentation you agree to be bound by the foregoing terms. Nice_STAR Conference, London, October 2017, 9 th -10 th 44